The Management Board of Proguns Group S.A., with its registered officein Warsaw (the "Issuer"), hereby announces that on [date], the Issuerentered into a Cooperation Agreement (the "Agreement") with MATSYS,Inc., a company incorporated and operating under the laws of the Stateof Virginia (USA), with its registered office in Sterling, VA.

The purpose of the Agreement is to establish a long-term, mutuallybeneficial cooperation in the fields of development, production, andcommercialization of defense technologies, advanced materials, andrelated applications. Under the terms of the Agreement, the partiesintend to jointly implement research and development projects, pursuecommercialization of innovative technologies, jointly apply for projectsunder government programs such as the European Defence Fund, andcooperate particularly in the areas of engineering, supply chaincoordination, and technology transfer.

The Agreement is of a framework nature, meaning that the detailed termsof cooperationspecifically the scope of R_D work, deliveries, rulesgoverning the use and protection of intellectual property rights, aswell as remuneration and settlement matterswill be defined in separatewritten orders or contracts signed by both Parties and forming anintegral part of their cooperation.

The Agreement defines the principles for developing, using, protecting,and commercializing intellectual property, covering both thetechnologies jointly developed under the projects and the pre-existingtechnologies, technical know-how, and data of each Party. Each Partyretains full ownership of its existing technology, knowledge, andmaterials, while enabling the other Party to cooperate in the jointdevelopment and commercialization of new technological solutions, inaccordance with the provisions of separate orders or contracts.

Pursuant to the Agreement, any transfer of technology, technical data,software, or defense- or dual-use-related information will be carriedout in full compliance with the applicable laws of the United States ofAmerica, the Republic of Poland, and the European Union, in particularwith regard to export control regulations and information securityrequirements.

The Agreement has been concluded for a period of three (3) years. EachParty may terminate the Agreement with 90 days' prior written notice;however, termination shall not affect the validity or performance of anyexisting orders concluded under the Agreement. Furthermore, theAgreement may be terminated with immediate effect by either Party in theevent of a breach of its key provisions, particularly those concerningexport control or anti-corruption regulations.

The conclusion of this Agreement constitutes an important milestone inthe Issuer's strategy of development in the field of advanced defensetechnologies and materials. Cooperation with MATSYS, Inc. provides theIssuer with access to cutting-edge technologies and know-how andstrengthens its position within the international defense industrysupply chain.

The execution of the Agreement also reflects MATSYS, Inc.'s positiveassessment of the Issuer's potential and competencies, as the Issuercontinues to expand its capabilities in the field of innovative defenseand material technologies. Cooperation focused on joint R_D projects andthe commercialization of advanced technological solutions, includingwithin programs such as the European Defence Fund, may lead to theacquisition of new commercial contracts and an increase in the Issuer'srevenues in future periods.